Are borrowers going to be forced to pay more for their loans because the European Central Bank thinks inflation is still too high? It looks like we are facing into another interest rate hike for the tenth time in 18 months. Stephen Kinsella, Professor of Economics at the University of Limerick and chief economics writer with The Currency joined RTÉ Radio 1's Morning Ireland to discuss. .
"On the other side, the major economies of the Eurozone, like Germany, are actually slowing down. It looks like industrial production there is not going too well. There's a couple of other factors, not the least of which is the war and how long it's dragging on. But it looks to me like they will probably increase it one last time. Or signal that they'll pause in this month and then try for an increase in October.
"So it's not just about what's happening today, it's about the bank guiding people's future behaviour and saying,"if you do this, we will do that". And it can respond to events very, very quickly. As we've seen during Covid-19. During Covid-19, the ECB was pumping out hundreds of billions over a mere number of months. So it's able to move extremely rapidly if it needs to.
Loans Loans Latest News, Loans Loans Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: businessposthq - 🏆 8. / 71 Read more »
Source: businessposthq - 🏆 8. / 71 Read more »